High demand, low input cost
FIRMS in Pakistan know very well that their profits will go up if there is high demand and low-input cost. Some services sectors are using this tool and charging more while, on the other hand, consumers in Pakistan are unaware whether the government will come forward to rescue them.
Some services sectors have inelastic demand and consumers are forced to pay whatever they demand, especially in the absence of good substitutes.
It is high time for the Competition Commission of Pakistan took charge and curbed illegal, unethical and overcharging practices to provide a level playing field to other small wholesalers and markets.